Contents insurance covers the financial cost required for repairing or changing personal household possessions and furnishing home content like curtains, furniture, white goods, stereo, TV, computer and other electrical appliances, clothes, jewelry, paintings, decoration pieces or even sporting equipments and toys. The insurance also covers things like sporting gears, motorized wheelchairs and other medical supplies too. However, it does not include items which are permanently attached to the building or portable items which you might take outside your home.
There are extra covers if you wish to insure portable items like mobile, camera etc. This insurance is suitable for homeowners and renters. It can be bought as stand-alone product or in combination is life or home insurance.
TYPES OF CONTENT INSURANCE:
The content insurance is divided into two broad divisions namely, new for old and replacement value.
New for old: Most of the content insurance police offer new for old covers. This refers that you are covered for the complete cost of changing lost or damaged contents with new contents, which may have high value than the ones lost. Therefore, the premium for new for old is generally higher.
Replacement Value: As the name suggest, this insurance policy covers only the value of your contents and the value or price of most of the home contents depreciate annually. This is why you must review your policy on regular basis and ensure it is up to date.
ENSURING BEST CONTENT INSURANCE:
The different insurance companies offer different quotes and different level of cover in their policies. Therefore, you must keep a very keen eye out for the differences and make sure to get the best one for you. There are several sites where you can get the best content insurance quote comparison.
The comparison will show you the contents insured, what contents will be covered and to what extent. It will show the compensations it will provide in case of any accident of theft. The quote will also tell you the premium and monthly or annual payments. Therefore, you can decide the one policy which will be best according to your possession and payment capacity.
The premiums for insurance are based on the claim made against the policy in future. The insurer takes into consideration multiple different factors when calculating the premium, which include:
- The basic excess amount you will choose.
- Security measures already installed in the house or the safety of the area you are living in.
- Location of the house.
- The level of cover you have chosen.
- The chances of theft to happen and crime rate along with risk of natural disasters like bushfire, floods etc.
- The amount of content insured.
- The age of the member buying the policy.
- The members of the family living in the house and their age.
- How occupied your house is.
- The frequency of the accident occurrence in the house.